As a construction manager, how do I deal with conflicts between employees?

First, take the problem employee aside and discuss the problem in private.
Second, be specific about the problem or misunderstanding.
Third, hear the employee our completely.
Fourth, if the employee is at fault in some way, discuss and agree on how his
performance is to change and how much.
Fifth, monitor and follow up on what was agreed to in the discussion.
Finally, keep accurate notes and records of the discussion.